Credit ratings agency Moody's upgraded Dubai Aerospace Enterprise (DAE)'s corporate family rating to 'Baa3' reflecting the company's improved funding structure and liquidity.
In addition to the investment upgrade from Ba1, the agency changed its outlook of the Dubai plane lessor to stable from 'rating under review'. Moody's also upgraded the senior unsecured rating of subsidiary DAE Funding LLC to 'Baa3' from 'Ba2.'
In addition to DAE's improved funding structure and liquidity, Moody's said "lower leverage, and further progress obtaining repayment of a large loan to its shareholder, the Investment Corporation of Dubai (ICD)", underpinned it rating action. The Baa3 rating, Moody's said, incorporates its "expectation that DAE will obtain repayment of its loan to its shareholder."
Last year, DAE committed to deliver more than $1.75 billion (Dh6.4bn) in aircraft assets. It increased its managed portfolio to more than 125 aircraft valued at $3.5bn. The lessor also issued $1.9bn of new unsecured debt.
“We have worked assiduously over the last two years to position our franchise to be rated as an investment grade company," Firoz Tarapore, chief executive of DAE, said in a separate statement.
"DAE's senior unsecured debt is now rated investment grade by three major US credit rating agencies. This will enable us to further solidify our top 10 franchise, accelerate our growth ambitions and strengthen our liquidity and capital position”.
DAE has increased its funding diversification by issuing a higher ratio of unsecured debt and reducing encumbered assets, a move that improves its ability to finance and manage the composition of its fleet, Moody's said.
The company's ratio of secured debt to tangible assets improved, declining to 27 per cent at September 30, 2019 from 35 per cent at December 31 2018.
DAE has more than doubled its revolving credit borrowing capacity since mid-2018.
"Moody's expects that DAE will manage its debt maturities to avoid concentrations that could increase its refinancing risks," and the state-owned lessor will continue to maintain "adequate" capital strength as it pursues "modest" fleet growth, according to the report.
Moody's could upgrade its ratings if DAE generates profitability that compares well with investment-grade peers, it said.
In terms of the climate-change concerns surrounding the aviation industry, Moody's said it expects DAE will pursue aircraft investments that reflect the shifting operating priorities of airlines to address environmental concerns.
Some credit challenges facing DAE include that the plane lessor does not currently have new aircraft orders with plane makers, relying instead on sale leaseback and trading activities to replenish its fleet, the agency said.
The ratings reflect "the company's asset and risk management strengths, the earnings and funding advantages associated with the company's unique access to capital and customers in the United Arab Emirates, and its balanced aircraft fleet composition," Moody's said.
Dubai Rugby Sevens
November 30-December 2, at The Sevens, Dubai
Gulf Under 19
Pool A – Abu Dhabi Harlequins, Jumeirah College Tigers, Dubai English Speaking School 1, Gems World Academy
Pool B – British School Al Khubairat, Bahrain Colts, Jumeirah College Lions, Dubai English Speaking School 2
Pool C - Dubai College A, Dubai Sharks, Jumeirah English Speaking School, Al Yasmina
Pool D – Dubai Exiles, Dubai Hurricanes, Al Ain Amblers, Deira International School
Children who witnessed blood bath want to help others
Aged just 11, Khulood Al Najjar’s daughter, Nora, bravely attempted to fight off Philip Spence. Her finger was injured when she put her hand in between the claw hammer and her mother’s head.
As a vital witness, she was forced to relive the ordeal by police who needed to identify the attacker and ensure he was found guilty.
Now aged 16, Nora has decided she wants to dedicate her career to helping other victims of crime.
“It was very horrible for her. She saw her mum, dying, just next to her eyes. But now she just wants to go forward,” said Khulood, speaking about how her eldest daughter was dealing with the trauma of the incident five years ago. “She is saying, 'mama, I want to be a lawyer, I want to help people achieve justice'.”
Khulood’s youngest daughter, Fatima, was seven at the time of the attack and attempted to help paramedics responding to the incident.
“Now she wants to be a maxillofacial doctor,” Khulood said. “She said to me ‘it is because a maxillofacial doctor returned your face, mama’. Now she wants to help people see themselves in the mirror again.”
Khulood’s son, Saeed, was nine in 2014 and slept through the attack. While he did not witness the trauma, this made it more difficult for him to understand what had happened. He has ambitions to become an engineer.
Who are the Soroptimists?
The first Soroptimists club was founded in Oakland, California in 1921. The name comes from the Latin word soror which means sister, combined with optima, meaning the best.
The organisation said its name is best interpreted as ‘the best for women’.
Since then the group has grown exponentially around the world and is officially affiliated with the United Nations. The organisation also counts Queen Mathilde of Belgium among its ranks.
Specs
Engine: Duel electric motors
Power: 659hp
Torque: 1075Nm
On sale: Available for pre-order now
Price: On request
In The Heights
Directed by: Jon M. Chu
Stars: Anthony Ramos, Lin-Manual Miranda
Rating: ****
Kathryn Hawkes of House of Hawkes on being a good guest (because we’ve all had bad ones)
- Arrive with a thank you gift, or make sure you have one for your host by the time you leave.
- Offer to buy groceries, cook them a meal or take your hosts out for dinner.
- Help out around the house.
- Entertain yourself so that your hosts don’t feel that they constantly need to.
- Leave no trace of your stay – if you’ve borrowed a book, return it to where you found it.
- Offer to strip the bed before you go.
Cricket World Cup League Two
Teams
Oman, UAE, Namibia
Al Amerat, Muscat
Results
Oman beat UAE by five wickets
UAE beat Namibia by eight runs
Namibia beat Oman by 52 runs
UAE beat Namibia by eight wickets
Fixtures
Saturday January 11 - UAE v Oman
Sunday January 12 – Oman v Namibia
The candidates
Dr Ayham Ammora, scientist and business executive
Ali Azeem, business leader
Tony Booth, professor of education
Lord Browne, former BP chief executive
Dr Mohamed El-Erian, economist
Professor Wyn Evans, astrophysicist
Dr Mark Mann, scientist
Gina MIller, anti-Brexit campaigner
Lord Smith, former Cabinet minister
Sandi Toksvig, broadcaster
Napoleon
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